KMD - Kathmandu

[winner69]

.......point taken McDuffy but MY point remains......would you personally go out and buy a viable and profitable business for 11 times what it earns per annum. If your'e being honest the answer is no??! It's nonsense. So in other words it will then take 11 years to recoup that investment (if they distribute 100% of earnings).....this is what they're asking. What a fantastic way to print money for the current owners!!

So you won't be buying any shares in anything then greatday .... it would be nonsensical to do so

Look at it this way .... over those 11 years you are getting a 9% return on your investment .... and guess what ... you still own the company after 11 years ... seems a good deal

[minimoke]

.....when you buy an unlisted business you usually pay 1.5 to 2 times what it nets pa NOT 11 times as you are suggesting Anna Naum (and others). Who in their right mind would buy a business priced like that?? NOT ME!!!

By comparrison:
BGR = 16.5
KRK = 26.4
MHI = 3.6
PPG = 27.5
SCY = 18.3
WHS = 17.4

[CJ]

By comparrison:

MHI = 3.6

I beleive this included a big one off gain so not a true comparison.

A PE of 11 isn't that bad for a retailer I would have thought.

[Anna Naum]

.....when you buy an unlisted business you usually pay 1.5 to 2 times what it nets pa NOT 11 times as you are suggesting Anna Naum (and others). Who in their right mind would buy a business priced like that?? NOT ME!!!

I do not think PE purchased KAt from Jan at anything like 1.5 to 2x. As for the 11x suggestion, as seen in the comps that minimoke provided, it can be suggested it is not that expensive IF it goes at 11x.

[percy]

a small unlisted company will sell for a pe of 4.
pe of 11 isonly high if the company,s growth is less than 11%pa.
should growth be a lot higher pe will soon come down.
pe is usually market,s guess of growth.
a good ratio is PEG ie the pe divided by growth.
so company on pe of 11 with expected growth of 22% would have a
peg of .5 excellent.
however if growth was only 5.5% peg would be 2 very poor.

[Balance]

Positive article in the Australian today on KAT.

http://www.theaustralian.com.au/kath...-1225795907685

Wow - a buy recommendation from a powerhouse broking firm like HTM Wilson! Or did they took so much stock they are now scrambling to justify why?

Let's hope the instos price this thing low.

[minimoke]

Wow - a buy recommendation from a powerhouse broking firm like HTM Wilson! Or did they took so much stock they are now scrambling to justify why?

Let's hope the instos price this thing low.

With Wilsons detailed technical analysis I'm really kicking myslef I didn't get in on this. I'm sure had I known that KAT spent 5% - 6.5% on marketing I would have been knocking on the bank managers door to double my mortgage for this opportunity!

[winner69]

That woman from Wilsons didn't do much of her analysis .... she only used bits and pieces out of the prospectus and added a few words like compelling to make her target price look right

This float will be a success .... the world wants these sort of things ... as some guru said it's just like the early 90's which saw the start of the biggest bull run ever

[kizame]

Stand back and think,just what is attractive about this float.

If it is a winner then it is because there is not much else on offer at the moment,bar capital raisings in the form of distressed companies.

I can't see how this company is attractive,buy a retailer whom has a competitive advantage or whom retails with a point of difference,they don't do either.
PPL - good product,niche market,well set out attractive stores.They have the wow factor as in No.1 searched for product on trade me for a long time.
MHI- This co. has changed since first listing,but you can't argue with the proven success formula,attractive stores,sales staff whom are drilled on the science of retailing,and not to mention an inspiring leader.

You can pick up cheaper better retailers already on the market with way better prospects IMHOP.

[Jay]

I would have thought 1 reason to steer clear , at least from the IPO, is that all the money is going to the (will be former) owners. What does that tell you?
The are not even prepared to stick around!